tv FOX Business After the Bell FOX Business August 31, 2012 4:00pm-5:00pm EDT
cheryl: something like that. david: looking at gold, up $80 in just 30 days. >> it certainly is. there is the bell. david: again, everybody at first seen as a big downer, and then it began to come up again, went down and just got off of triple digits again. this market is having a terrible time trying to figure out what ben bernanke means to say about another round of money, probably exactly what ben bernanke wants to cheryl: when the bell rings the action really begins. st. louis fed president will give us his reaction of ben bernanke's speech today, plus former governor of the federal reserve board tells us what bernanke should have done. david: also, if you're trying to know the inside to the presidential economic advisors, he is here to explain exactly
what mitt romney's economic plan is, is he for rates decreases across the board? we are not really sure. perhaps you can clear it up for us. cheryl: first we will tell you what drove the market today with the data download. stocks posting a third straight month of gains. ben bernanke says central banks are ready to act. all three major indices closed and agreed with the nasdaq surging 4%. nine of 10 sectors ended higher lead with technology and consumer discretionary. oil jumping 96.54 per barrel. 10% for the month of august, the biggest percentage gain since last october. consumer sentiment climbed in august rising 74.3 from 72.3 in july. price discounts and low interest rates boosted buying.
david: try to figure out what ben bernanke is up to. i can guarantee he will have a clear idea because of these guys, we will strengthen it all out. telling us what area of the market he says is a buying opportunity of a lifetime and he has some ideas about what the fed was trying to tell us and former fed member telling us why qe3 is no longer on the table. in the pit of the cme. we always look to gold to see what is happening as a barometer of what the fed does or does not. is it time to sel seller doesn't have room to grow? >> the reaction is the same ways on 2010 and the same in 2011. this kind of policy action, using means supporting the bond
market, lower dollar correlating with the higher equity market as far as prices continue to go. cheryl: the relationship between the dollar and the euro. the euro has frankly held up rather well this week against the dollar. do you think that has anything to do with the fact we are seeing stimulus out of euro before we get any stimulus from the u.s. fed? >> the stimulus was present in the u.s. bond market running of the spread between the tenure and the german food. that is what has kept the euro up and it has not really been up, it is the dollar that has been done. david: you are actually happy by bernanke statement because he thought indicated he was not
going to do another round of qe3. contrary to that of the comments of charles schumer that just came out, and i will put them on the screen, charles schumer says it is clear chairman bernanke as looks at the economic indicators believes it is time to prime the pump to buy more bonds, he should not let any political backlash deter him from falling through and doing the right thing, that's just spouting off political rhetoric or is he onto something? >> i really believe he did not come ou,for the quantitative eag today. i am relieved he did not do that because all that is going to do is hurt the dollar. we need a strong dollar in this economy because consumer spending makes up 70% of gdp growth and printing money out of thin air will not solve the problem. david: what gave you the indication from what bernanke said that there wasn't going to be another round of qe3 because
a lot of people thought indicated there would be another round. >> i would hope he doesn't do it. he left it to vague that i cannot seepassed into another qe easing round. cheryl: we have in watching the sense the euro zone could in fact at some point later on this year kind of get itself together when grease exits the euro. do you think there are investment opportunities in europe right now? >> i think if he pulls out a u.s. style quantitative easing process that we could see the buying opportunity of a lifetime in the euro zone if he pulls something like that off. you have to give 17 countries to react all in the same motion.
david: are very often beat on expectations, but you said don't believe those because if in fact it is all about the bottom line, not about the topline that its revenues were not coming in as they should have been. >> nobody is talking about the companies coming in and beating revenues but only 40%. only beating the earnings because of cutting costs. they are missing the revenues and not focusing on growth. if they will not focus on growth, it'll be setting up for disappointment in 2013. cheryl: what are we looking at now potentially 2% gdp for the second half of 2012? china has 8% gdp. what is it going to take to get the economy back on track in the next year? is it washington, new york, what is it? >> a couple of points worth
expounding to this u.s. growth story. if the federal reserve does actually do or embark on a quantitative third easing, we were losing the purchasing power in the dollar and reignite a commodity bubble that will eat into the middle-class america's purchasing power and that will ultimately erode revenue and topline corporate growth and that is bad for overall u.s. growth. and that i think is ultimately why we are going to be stuck at this growth rate but only for the next year but really for the next two or three years because an economy that has gone through this big contraction takes time. it does not take monetary policy or fiscal policy, although that would help, thank you congress, but it really takes time. david: we will check back in with you for a couple of minutes
on how the s&p futures close, thank you very much. >> you bet. cheryl: ben bernanke delivering his speech at jackson hole today. david: stating the fed would be ready to act when necessary. joining us now for a fox business exclusive is former governor of the federal reserve board. good to see you. ben bernanke made some interesting claims today, he claimed citing some other data in fact the fed bond buying and money printing so far actually stimulated the economy to the tune of 2 million jobs suggested added 3% to economic growth but when you look at the figures, growth has been declining steadily since the qe process began, so how can he make the claim it is actually stimulating the economy when the economy is slowing down? >> he can make whatever claim he wants, but whether it is mounted is another matter.
david: is it? is it a valid point or not? >> now. no, it is not valid. the fed gains its power by running the position of the guardian of praise developed, and if they do that, then they have power to ease, but when the fed puts all the marbles trying to get the economy to grow, it really is not very effective comment here again let me say the problem that we have is that learning she was a better student of the monetary errors and the great depression and he was regulatory. he doesn't seem to understand that regulatory policy went pretty well in the great depression. roosevelt closing the banks and getting them all examined and opening up saying they are good now. somehow caught in a regulatory
monetary contraction that is very unfortunate. cheryl: still today he reiterated and we heard the statement before from him from the fed statement itself, ben bernanke, he was ready to act. is there one thing that could happen in the u.s. economy or the european economy that could cause ben bernanke to pull the trigger on productivity using? >> i don't think he really wants to pull the trigger on monetary easing because i think he knows he's not going to get much bang for the buck, so he'll be much more happy if he can avoid it, but he wants to say we've got that out there. david: romney has been asked specifically if he thought ben bernanke with a good job. he said he would not renominate bernanke. would you?
>> if romney asked me that question, i will be glad to supply the answer to romney. romney has got so many things figured out so well that this economy of ours is going to grow in 2013 los 2013 lot more than e anticipating. david: does bernanke deserve another term? >> yes, in a way he does, but in a way he doesn't. he doesn't in regard to not seeming to understand that messing up the banks stops them from lending so he has all those excess reserves out there, but the banks are not lending them. we need to provide banks to make more loans. cheryl: one of the things
mr. bernanke has been very vocal about it has not shied away from the fiscal cliff, he has a very negative that comes to the word congress. do you think his words carry any weight in washington now? >> not too much. i think chairman bernanke should stick to monetary policy and not have all of this with regard to fiscal policy because i think they will have an election that will change all that and this economy will do just fine. david: when he buys treasury bonds, does not begin to participate in the political process and does not provide cover for freespending politicians spending money they don't have? >> not really. they can spend money they don't have without the cover of the federal reserve. so that is already there. cheryl: former governor of the federal reserve board. thank you very much, it is nice to talk to you. >> good to be with you.
david: the highly anticipated speech by ben bernanke has come and gone and guess what, we don't have a clear idea what he has in mind. perhaps st. louis fed president will have an idea, he joins us live with our own peter barnes. cheryl: and his take on mitt romney's speech last night, did he say enough to give voters enough when it comes to the economic claims? david: close to 70 million barrels of oil passes through the strait of hormuz everyday. our own melissa francis in mitt with a look at what it takes to keep the oil flowing matter what happens between iran and israel. [ male announcer ] let's level the playing field.
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>> closing up shop on the board, bunch of sell orders at the close comments in to see some people closing out positions as we head into a long weekend. i think that is probably right given the testimony and what we are seeing are anticipating really. david: on the last kick of the trading day was a little bit of a selloff in that continued into after-hours. have a great weekend, thanks a lot. cheryl: shares of group on hitting a new low today. david: and facebook. which hit a low today of all time 18.4 think it was. it brought down group on with it, right? >> yes, it did. we're also talking about group on down 1%, the low $4.12.
the daily deal site down 37.5% this month. i take a look at the social media stocks we always talk about, a great day for pandora, all in the red. thanks, back to you. cheryl: all the social media stocks are doing good. david: nearly 17 million barrels of oil passing through the strait of hormuz everyday. in charge of making sure nothing gets in the way of oil that flows into the world energy market. cheryl: melissa francis with an inside look at what it takes to protect the world's oil. the listener. >> their mission is really twofold, they want to keep the waterway open. international waterway with a lot of commerce that goes through there. the second mission is revised to cover for our troops in afghanistan.
they fly over afghanistan and they shoot or talk to them or do anything they can to support the troops. there are only a few women that are in the strike group that fly out in a jet. i had to ask her what is that like? >> my mom and dad are scared to death i am out here. i have had got a talk in the past say ma'am, thank you for talking to me, it was great to hear a female voice. us being over head and dropping bombs would ever keep them safe and keep americans from dying, i did my job. everything you are sacrificing and away from home, and we are away from home for long time, but those guys on the ground are less than optimal conditions every day. and i am here to keep them safe. almost like being a mom to them, whatever you want to call it.
that is why i do what i do. >> it is so interesting talking about the troops on the ground are shooting at the enemy is for the troops in afghanistan as well as keeping the sea strait f hormuz open. we'll talk about their mission in that area and also, you may recognize that from very speci special, it has been in a couple of movies coming up at 5:00 p.m. go ahead, quickly. >> did not reveal all of it, there's more to it than the one movie a mentioned before, so you don't know all the answers. david: 5:00 p.m., special edition of "money" from the middle east. cheryl: will have interview with fed president, does he think ben bernanke got it right today?
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david: no more hidden fees, the government mandating new rules for 401(k) providers they must now disclose the information for all participants. cheryl: boosting retirement balances. christoph c. io former paypal ceo joins us now. for mutual fund investors always the fees have been to catc the f you will with regards to performance, do you think it is a good thing the rules are changing? >> i think it is a vital thing. for so long the true fees within the plan itself additional fees such as plan administration these and surrender fees and things like that have been hidden, the participant has been unable to know exactly how much they are paying. now finally they can get this information. david: correct me if i'm wrong but i heard there are so many fees. into these accounts that you may
actually lose half of your 401(k) plan by the time you're ready to retire because of these fees, is that true? >> that is true. but we have tried to do is take the fees and boil it down to one simple number, what is the total annual fee that you will be paying? with this new information that government has mandated you can now take a look and see, and if you have a plan that is less than 1% total fees, that is a good plan. between one to 2%, a bad plan. over 2%, unfortunately a number of plans over 2%, red, ugly. cheryl: where are the best places to evaluate mutual funds? we know morningstar, plenty of journals and papers that tell us what to do, but where i where'st place to do key evaluation for these funds? >> our site personal capital.com
is one place. for your 401(k) be more information because they are also fees within the 401(k) plan themselves. starting september 10 that information will be available on our site as well. five minutes and you can see not only what you are paying now but what it means 30 years of your working life. david: what about all putting it in an etf and provide the capital you need. >> i think it is a great idea. there will not be an absence of these even with etf and even within a 401(k) plan, there will still be fees but you can get them down to a very low level which will actually than improve their prospects for retirement. david: personal capital ceo, great to see you, thank you for coming in. appreciate it.
we didn't know exactly where to put this segment. clint eastwood was on after all the minute planning, the scripted, pre-scripted presentations and everything there was this moment of extraordinary spontaneity i had never seen covering conventions for over two decades, we might have a little disagreement on this, let's play a little bit of it to give us a jumping off point for discussion. go ahead. >> what do you want me to tell romney? i can't tell him to do that, can't do that to himself. you're absolutely crazy. you are getting as bad as biden. we own this country, and it is not you owning it, not politicians owning it, politicians are employees of hours. they will just come around and beg for votes every few years,
but i just think it's important that you realize and that you are the best in the world, whether you're a democrat or whether you are republican, whether you're a libertarian or whatever, you're the best and we should not ever forget that, and when somebody does not do the job, we've got to let them go. david: now i happened to love that, but cheryl? cheryl: i was not a fan. i think he is showing his age a little bit. i know he is clint eastwood but i don't look to celebrities to tell me who i should vote for, what party i should dean. and i thought it was a little strange and i think it took up a lot of time and frankly i want to hear about the issues and i want to hear from the candidates. david: it was such a pleasure to hear from something totally unscripted, the deal was they had an empty chair and he was supposed to be speaking to
president obama. the empty chair had a prompter, he didn't have a prompter. i thought the whole thing was very tongue-in-cheek reminding me of jimmy stuart. >cheryl: my favorite rumor going to last night was that there would be a hologram of ronald reagan. david: the other thing, saying he did not like lawyers, said maybe it is time for a businessman, a stellar businessman and i think it is that time and i think he step aside and mr. romney can kind of take over. speaspeech within the business credentials, i wanted to hear more about them. david: we will get some of that. federal reserve chairman ben bernanke stopping short of announcing another round of stimulus, did he make the right move? who will be asking st. louis fed
president next. cheryl: plus mitt romney promised in the country more jobs. we will be talking one-on-one, former president of the president's council of economic advisors. he will give us his reaction to last night. [ female announcer ] they can be enlightening. hey, bro. or engaging. conversations help us learn and grow. at wells fargo, we believe you can never underestimate the power of a conversation. it's this exchange of ideas that helps you move ahead with confidence. so when the conversation turns toour financial goals...
david: time for a quick speed read of some of the day's other headlines. five stories in a minute of the first up, american and uggs air signed a merger exploration confidentiality agreement, whatever that is. the deal paves the way for the companies to evaluate information for a potential merger. >> pepsico is testing new diet pepsi formula. the soft dripping maker is considering the u.s. based formula for one overseas. >> a court rules that samsung did not infringe.
ford says its focus model is on track to become the world's best-selling car this year. ford sold nearly half a million focus sedans and hatchbacks worldwide in the first half of 2012. nordstrom is planning to open a pop up store in the heart of manhattan. the new store will highlight the new "gq" men's shop for up scale buyers. buyers get ready for that. that is today's speed reed. i have a couple sections left. [buzzer] it was a little light today. >> highly anticipated jackson hole speech federal reserve chairman ben bernanke did not pull the trigger on another round of easing but he did state the fed would provide additional support as needed. david: what could it take for bernanke to act? >> peter barnes live in jackson hole, wyoming with jim bullard. >> that's right, cheryl and
peter. jim bullard joins us to give his take on ben bernanke's speech. welcome back to fox business. >> i'm happy to be here. >> what is your reaction to chairman bernanke's speech? >> he does a good job in these situations. he laid out a lot of evidence and thinking that has been going on around the fed for the last two years about the effectiveness of various programs. i now he was very balanced. he didn't tip any hand what the committee might do. that makes a lot of sense because there is more data to come in and we don't have to make a decision before september or beyond. >> september 12th is the next meeting. you have the all-important jobs report a week from today that will give you more date to chew on. the date -- data on the economy has been mixed last month or so. where do you think the economy stands right now? >> we had a string of bad news through the first and second quarter of the year. i think that turned around a
little bit since the last fomc meeting. that is leaving the committee in a little bit of limbo as far as, you know, we do have an easing bias but whether to take action or if we do, then exactly what action to take. i think those are all up in the area. >> in the last meeting, july 31st, august 1st, the minutes, they were about as meaty as i have ever read and there are a lot of options there from additional quantitative easing to interest rate on reserves, bank reserves at the fed and of course the one that you're going to look at on september 12th, is going to be whether or not to extend the forward guidance on keeping interest rates exceptionally low for, even beyond 201. what do you think of those options? >> i haven't liked the calendar date but if we're going to have the calendared date -- >> for extended forward guidance. >> you have to move it when economic conditions change. that's where we are. the truth as of january of
this year we had a stronger forecast than we have now. it is definitely downgraded but we haven't moved the data at all so that doesn't quite fit together. i don't know where the committee will come down on that but that's the situation we're in. on the other hand if you go farther out into the future there is so much uncertainty what will happen out there in the future is it really having any impact or is it really meaningful? by the time you get that far out into the future things will have changed. >> plus you have changes in the voting members of the fomc. >> several. >> you will be back on. >> next year, yeah. >> next year. >> yeah. >> so that creates even more -- it seems to me for you -- >> although i have to say i don't think voting is a critical thing on the committee. everyone comes to the meetings. everyone has input. the chairman is very good about listening very carefully to everybody and consensus organization. >> right. >> there isn't that much, in the way of contentious voting. >> but it does seem that you all are at a, at a period of
great uncertainty about the future and thus, that is not just with what you're handling on the monetary side but also with the fiscal cliff, with europe. very tough job ahead for you and your colleagues? >> yeah. europe is definitely our biggest risk. but, right now, it's not, in too bad of a place, compared to where it's been in the last two years here. so, you know, if you look, just think about europe, you know, a year ago at this time, it was very tumultuous. our financial stress indexes were jumping up and down. and that's not really there right now. so, maybe it's time to just see what the europeans do here. >> just to wrap up here, on our live portion of the interview, you have some very specific ideas about an additional round of quantitative easing, if the, fomc decides to go forward with something like that. your proposal is what? >> yeah.
i would, and i've been advocating since 2009, maybe i will actually get it, i started out with only me but, i think i have a lot more support now than i once had. but if we are going to do qe, or any balance sheet policy i think you should do it meeting by meeting. it would be the exact analog of interest rate policy. make a small move at a particular meeting. give some indication the direction you'd like to go in but you reserve the right to look at the data into the future and possibly change course a little bit depending how the data come in. i think that is the way to do balance sheet policy instead of -- >> 500 billion. >> very large actions with these finite end dates and the end dates really killed us because come at tiles, when, you know the data going the wrong way on us. so we're ending up looking foolish in the end. >> we'll be watching the next few meetings. thanks for joining us on fox business. david, cheryl, we'll not continue our interview with jim for some exclusive
material for the website that will be posting to foxbusiness.com later this evening. back to you, guys. >> peter barnes, thank you very much. like a postcard behind peter barnes. david: unreal, even when you're there in person it is unreal. gop nominee mitt romney making his case to america last night. did he con strips voters that he will give the struggling economy a boost. the former president of the economic advisors weighs in. >> movies are bringing big bucks to studios but costing states millions of dollars. that is straight ahead. ♪ [ male announcer ] wouldn't it be nice if there was an easier,
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month of gains. at the closing bell the dow rising 90 points. the european union is stepping up efforts of centralized supervision of more than 6,000 banks in the eurozone. "the wall street journal" is reporting that the e.u. is looking for the european central bank to police the banks to help prevent future financial crises. marathon petroleum is tapping the energy department's emergency oil reserve in the wake of hurricane isaac. the company is borrowing one million barrels of crude after isaac forced one of its refineries to cut back on production. that's the latest from the fox business network, giving you the power to prosper. copd makes it hard to breathe, but with advair, i'm breathing better. so now i can be in the scene. advair is clinically proven to help significantly improve lung function. unlike most copd medications,
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details from ed lazear, former chairman of president bush's council economic advisors. always a pleasure to see you, ed. you're out in jackson hole, always a beautiful location. did you think romney's speech was a little short on details? >> i actually did not. i'm a little surprised that is the reaction. i thought the governor was quite specific. those things he didn't say in his speech are quite explicit in the papers he put out. so the plans, i think have been, you know, very deiled, relative to the kind of things, you know, say that the president haste been putting out so i --. >> first we had the 59-point program that was frankly a little confusing for most people. >> too much. david: didn't fit on a bumper sticker. in what way has that been refined since then? >> there is a five-point document that he has circulated that i've read and have gone through. it is consistent with the way i certainly think about the world. the vision that the governor
has and that the president has of the economy are really quite different and i think those are laid out in the governor's plan. you know, if you think about what it is that we need to do right now, the problem has been that over the past few years we've been focusing on short-run policies. they haven't been effective. it is unfortunate but we're kind of stuck at this very high rate of unemployment. the labor market is still in very bad shape. the way we know that you fix these things is not through short-run gimmicks but rather through long run changes and long-run changes involve broading and lowering tax rates. broading the base. improving trade and making sure that we go after markets that are going to be the vast majority of the world. get, get our fiscal situation in order. and use a cautious side of regulation. that doesn't mean no regulation. but it means not excessive regulation and understand the cost and benefits. so those seep pretty consistent with a document that the governor's put out. david: spelling out specifically, for example, you mentioned tax policy.
lowering tax rates all across, he said he would lower all tax rates from the wealthy to the poorest who are paying taxes. and get rid of some of the deductions which sound actually, like broading the base on simpson-bowles sort of plan. >> that's right. david: i had tammy frisbee on yesterday, one of his economic advisors. i tried to squeeze her on that point, exactly what kind of rates, et cetera. here is how she responded and i want to get back to you. let's play the sound. >> governor romney is following same model as president reagan of the those are negotiations that will happen under governor romney's leadership with the leaders in congress. we hope is large majority in the house and also now a republican senate. david: ed, the difference between governor reagan when he was running for president, reagan had the kemp-roth plan, there was also a specific plan in congress for cutting rates that reagan kind of used. we don't have a plan like
that now. >> i think the specifics are there. i think you're being too tough to be honest i would argue that broading the base by move in direction of a consumption tax, that was consistent, i woos on president bush's tax panel for a year before i was his chief advise sore. everything we laid out in the tax plan is consistent with the kind of things that the governor is saying. that plan was quite specific. if you wanted specifics you could say this would be a model the i don't know if the governor would follow all the things that we said but that would certainly be the thing that i would recommend. and i would say if i were suggesting to the governor the direction he might move in terms of actual details that would be a good starting point. david: bottom line, ed, this has to be the last question, does romney have that same, reaganesque conviction, that lowering tax rates will stimulate the economy and could actually bring in more revenue than current tax rates? >> well, i think he has the conviction. i'm not sure he is quite as good at delivering the
message. there are very few who were as good as president reagan at delivering that message. but i think he does have the conviction. in fact i saw that in his speech last night. i was quite encouraged by his discussion of his business experience and when he was talking about bain and talking about building a business, and the fact that he is pro-markets, pro-growth and pro-jobs, that came across to me. so defend -- again, i think he certainly has the belief and his communication skills may not be quite as good as president reagan's but virtually no one's are. david: that's true. i have to squeeze one more in, ed. you mentioned something about the consumption tax. do you think there will be a move during, if governor romney becomes the president for a consumption tax of some kind? >> well, a consumption, there are a number of ways to get to a consumption tax. i don't want to be too wonky. usually when people think of consumption tax they think
of a vat or a retail sales tax. that is not how i'm thinking about it. i'm thinking about a tax that does not tax investment. if you don't tax investment you're only taxing consumption. that's important because what it does, it stimulates investment and investment is the key to job growth. so i think that is really an important company point to the plan. david: everyone is trying to get the ear of governor romney. ed lazear. >> pleasure to be with you, former head of president's coins is advisors. lord knows what becomes of man if romney becomes president. cheryl: good interview. some of the nation's big hollywood blockbusters have getting tax breaks at that cost states millions. we'll have the details coming up next. ♪ . everyone has goals. take the steps to reach yours, with us
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payroll, those kinds of things, but not with a three-month movie shoot which is why critics call this welfare for movie producers. while "the avengers" are a product of hollywood that is not where the movie was filmed. >> action. >> reporter: "the avengers", "3:10 to yuma", all big budget movies filmed not in tinseltown but new mexico. >> we have great weather, great locations and crew base and infrastructure. >> reporter: and 50 million in taxpayer giveaways argue whether i to studios that don't need it. 43 states offer big tax breaks to lure hollywood from hollywood. >> one of the reasons we attracted business, very few if any businesses spend as much money quickly across the broader range of the economy as does film. >> reporter: many opposed subsidy. >> there is study after study has shown this is bad
economic policy. the return to the taxpayers, the return to the public treasury, is literally pennies on the dollar. >> try that again. >> reporter: nationwide studies say states take in astley as 15 cents for every dollar they spend. >> any industry you have to pay money to bring to your community won't stay there. >> reporter: now, north carolina, for instance, claims it made money on its investment, sorry, made its money on its investment in "the hunger games." however four states, david, have discontinued their subsidies. david: that's right. it was made in north carolina. forget about that. william la jeunesse. thank you very much. good to see you. have a good weekend. time for the top two things to watch next week. number two, with the rnc wrapped up of course now it is the democrats time. all attention turning to the democrats as the democratic national convention officially kicking off on tuesday. speaking of the carolinas that is precisely where it
is of the president obama is set to give his speech on thursday night. interesting that sort of like the republican party, they originally planned i think four days. now they have it down to three. seems like, it is easier to digest in three rather than four. cheryl: bill o'reilly said it should be two days. david: bill o'reilly hates these things. he can't stand them particularly when we know who the nominees are. cheryl: the number one thing to watch next week will actually be the august jobs report. that will come out on friday. it will be kind of worrisome frankly. economists are expecting a gain of 125,000 in nonfarm payrolls. the unemployment rate to hold steady at 8.3%. i have to say, david, it will be a little disconcerting this unemployment report. we keep seeing more and more people leave the payroll, leave the payroll doles. they quit looking, they give up. if we see that again, that will make jobs more of an issue coming up in november. david: this by the way is the speech, what i'm holding in the hand is the speech that ben bernanke gave
today. monetary policy since the on set of the crisis. he is talking about, essentially defending all of the quantitative easing that we've had, all of the money-printing, bond buying et cetera. and he does claim were it not for what he is doing there would be two million fewer jobs in the economy. of course a lot of economists, we heard wayne angell heard earlier in the hour speak to this point, he thought that was nonsense. it was way overstating the case. that's why i think, we said at the end. hour, you had should have a better idea what ben bernanke meant. cheryl: right. david: i think he did indicate he is going to do some kind of, some kind of quantitative easing whether it is bond buying or whatever it happens to be. cheryl: but i will say, david the economic data we've gotten since we got the fed minutes and from that meeting does not really give him enough reason, this is my opinion, to continue with quantitative easing. david: oh i agree with you. cheryl: i think he would do it anyway because ben bernanke doesn't really care. david: the biggest misnomer to call these things a